The European Central Bank announced on Thursday that it has extended the pause on rate hikes, keeping its main policy rate unchanged at 2.0 %. As a result, the deposit facility rate remains at 2.00 %, the main refinancing operations rate at 2.15 %, and the marginal lending facility rate at 2.40 %.
The Governing Council’s updated assessment confirms that, in the medium term, inflation is expected to stabilise around the 2 % target. Despite a challenging global environment, the economy continues to show resilience, driven by low unemployment, solid private‑sector balance sheets, the gradual roll‑out of public spending plans for defence and infrastructure, and the supportive impact of the previous rate cuts.
At the same time, uncertainty persists, stemming from ongoing global trade‑policy uncertainties and geopolitical tensions. The Council remains committed to steering inflation back to the 2 % target, and it will set the “appropriate monetary policy stance” based on data, reviewing that stance at each meeting. Accordingly, no fixed path for interest rates is set in advance.
